Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Principal Issues: Are tuition fees paid for courses taken by way of the Internet with a foreign university eligible for the tuition tax credit?
Position: No
Reasons: Interpretation of the legislation and consistent with prior opinions
Sent on March 11, 2005
XXXXXXXXXX
Dear XXXXXXXXXX:
The Honourable John McCallum, Minister of National Revenue, has asked me to reply to your correspondence addressed to XXXXXXXXXX, regarding the possibility of claiming income tax credits for the cost of courses you took over the Internet with a foreign university.
The Income Tax Act provides that tuition fees for courses taken at a university outside Canada will only qualify for purposes of the tuition tax credit if, among other things, the student was in full-time attendance at the particular foreign institution. It is the view of the Canada Revenue Agency (CRA) that this requirement can only be met if a student physically attends the particular university and would therefore not be met by a student taking courses over the Internet.
Although you are not entitled to the tuition tax credit for the cost of the foreign university courses you took over the Internet, you may be entitled to the education tax credit. In general terms, to qualify for this credit, you must have been enrolled in a qualifying educational program at the foreign university in courses of not less than thirteen consecutive weeks that lead to a degree. To claim the education tax credit, the law does not require the student to be in full-time attendance at the foreign university. The wording of the legislation simply requires that the student be enrolled in a qualifying program at the university.
Additional information concerning the rules for claiming the education tax credit and the tuition tax credit can be found in interpretation bulletins IT-515R2, Education Tax Credit, and IT-516R2, Tuition Tax Credit. These bulletins are available on the CRA Web site at www.cra.gc.ca.
I appreciate the opportunity to respond to your concerns on this important issue.
Yours sincerely,
Ed Gauthier
Deputy Assistant Commissioner
Tax and Regulatory Affairs
Policy and Planning Branch
Canada Revenue Agency
c.c.: Minister's Office
Political Assistant
Kimberly Duval
957-2747
2005-011653
February 24, 2005
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